It was a choppy, lifeless day in the indices. It was perfect for investors and boring as could be for traders. That said, let’s look at a few top stock trades with a plethora of earnings in play.
Top Stock Trades for Tomorrow No. 1: United Parcel Service (UPS)
United Parcel Service (NYSE:UPS) ripped to new all-time highs after better-than-expected earnings. Who can be surprised given the rise of e-commerce?
The move launched shares right through the 161.8% extension, although UPS stock is fading a bit from those highs. From here, I want to see if UPS stock can push through $200 and the two-times range extension. If it can, investors may use the 261.8% extension as a longer-term price target.
Otherwise, a break of $190 likely puts the 10-day moving average in play. If sellers really step in, they could push this name back down toward the $180 level and fill the earnings gap.
However, at this point — after a big earnings reaction and a long sideways base — we’re looking to buy the dips in UPS, not sell the rips.
Top Stock Trades for Tomorrow No. 2: Crocs (CROX)
A similar takeaway is in play for Crocs (NASDAQ:CROX) as the stock erupts higher on earnings.
The stock gave patient investors a beautiful payout on Tuesday. The stock was setting up in an ascending triangle pattern, where rising uptrend support (blue line) continued to guide shares into a static level of resistance. In this case, resistance was in play between $84 and $85.
On Tuesday, the stock burst over this level, rallying right to the 261.8% extension. And who says technicals don’t matter?
From here, let’s see if Crocs can hurdle this measure and build above $100 or if it fades from here, putting the post-earnings low on the table. On a deeper dip, see how it handles the 10-day moving average and potentially the $85 level.
Top Stock Trades for Tomorrow No. 3: Starbucks (SBUX)
Starbucks (NASDAQ:SBUX) is due to report earnings tonight and the stock has been trading well in the days and weeks leading up to the report.
Shares continue to consolidate above $115 but are off the highs set earlier this month. On a bullish reaction, let’s see if Starbucks can take out the current high near $119 and climb to the 161.8% extension near $121.50.
On a bearish reaction, however, let’s see where support comes into play. Specifically, I want to see if the 50-day moving average and uptrend support buoy the stock. If not, $100 could be in play.
Top Trades for Tomorrow No. 4: Pinterest (PINS)
Pinterest (NYSE:PINS) was hit during the great tech-stock selloff, but has been under pressure lately as shorts pile into the name. Can earnings save or drown the bulls?
The company reported after the close on Tuesday, and shares have been tightening into a wedge pattern. Until this wedge pattern resolves in one direction or the other, it’s hard to have too much certainty with this name from a trading perspective.
On a decline below uptrend support, see how PINS does near $70. A close below could put the $60 to $62 area on the table, and ultimately, the 200-day moving average. For what it’s worth, I’d love that reaction for a long-term investment opportunity.
On a rally over downtrend resistance, look at the $85 to $86 area and this month’s high near $88. A close above the current all-time high near $90 likely puts $100, then $108 on the table.
Top Trades for Tomorrow No. 5: Hasbro (HAS)
Hasbro (NASDAQ:HAS) is giving investors a muted post-earnings response, but the chart pattern is still something to watch. Specifically, I’m keeping an eye on this week’s low near $95.50 on the downside and $100 on the upside.
This week’s low also comes into play near the 50-day and 21-week moving averages. Breaking below $95.50 not only sends it below these measures, but also gives us a weekly-down rotation. That could put $90 and the 200-day moving average in play.
On the upside, though, $100 has been resistance all year. A move over this measure could put $109-plus in play.
On the date of publication, Bret Kenwell held a long position in PINS.